Archive for December, 2009

IMF Posts Paper: Fiscal Rules-Anchoring Expectations for Sustainable Public Finances

Wednesday, December 23rd, 2009

Yesterday, the IMF made available the Fiscal Rules-Anchoring Expectations for Sustainable Public Finances paper that describes the usefulness of fiscal rules in supporting fiscal consolidation and discusses the fiscal frameworks that could be adopted as countries emerge from the current worldwide economic crisis. Published on Dec 16, 2009, this paper was requested by the G-20 and the IMFC and represents the IMF’s ongoing analytical research on economic strategies to be adopted after the crisis.

The paper addresses how in many cases the current global crisis has strained the rules and presents the case that in order to move forward beyond the current economic crisis, that rules-based frameworks can be useful in anchoring expectations regarding fiscal sustainability.

The authors of the paper agreed that rules based frameworks could play an important role in enhancing confidence and anchor expectations regarding fiscal sustainability. And that it was is essential for these frameworks to be tailored to countries’ circumstances.

Read the staff paper on the IMF’s website >>

La reforma de la gestión financiera pública

Tuesday, December 22nd, 2009

La reforma de la gestión financiera pública es sin duda, un aspecto importante para lograr la mejora en la calidad del gasto, lo cual impacta positivamente en la mejora de la calidad de vida de los ciudadanos, que dicho sea de paso, es el objetivo más importante de los Estados.
ICGFM Survey of Government Finance Managers, Spanish
Es interesante observar a través de la encuesta realizada por Grant Thornton, que los problemas y acciones recomendadas respecto del tema, son compartidos en forma global por los líderes de finanzas gubernamentales.  Al respecto es importante resaltar que es bueno implementar buenas prácticas y aprender de experiencias de otros países, analizando y definiendo la estrategia para aplicarlas al País en particular, toda vez que las mismas, no son recetas que se pueden copiar, sino más bien la estrategia debe tomar en cuenta las necesidades particulares y adoptar las medidas necesarias para que dicha reforma sea irreversible y sostenible en el largo plazo.  Al respecto se consideran importantes el liderazgo (al mas alto nivel posible), una clara hoja de ruta con objetivos claramente establecidos en el corto, mediano y largo plazo, así como los marcos conceptuales y jurídicos, procedimientos y normas, que constituyen la base de las reformas gubernamentales.  La estrategia debe incluir el blindaje necesario para evitar que el cambio de corrientes políticas la desvíe de sus objetivos en el largo plazo. Al respecto es importante convertir el proceso en una política de Estado a fin de institucionalizarla.
 
La coordinación inter-gubernamental tanto horizontal como vertical (con los diferentes niveles de gobierno) es fundamental para llevar a cabo la reforma de la gestión financiera pública, toda vez que cada Institución debe hacerse responsable no solo de realizar su función conforme los límites y ámbito establecidos por la Ley, sino también de colaborar y coordinarse en forma eficaz con el resto de Instituciones según corresponda.  
 
Como parte de las herramientas fundamentales para hacer sostenible la reforma, se considera el papel que la tecnología juega a través de los Sistemas de Gestión y Administración Financiera Pública, toda vez que los mismos permiten incorporar e implementar los procedimientos, controles, análisis, evaluaciones en tiempo real y apoyo a la toma de decisiones así como proveer de los insumos que permiten mejorar la transparencia.

Government of Kyrgyz Republic Selects FreeBalance Software for Integrated Treasury and Human Resource Management System

Tuesday, December 22nd, 2009

 FreeBalance to deploy fully integrated web-based treasury and human resource information management system

 Ottawa, Canada (December 22, 2009) – FreeBalance, a For Profit Social Enterprise (FOPSE) software company that helps governments around the world to leverage robust Government Resource Planning (GRP) technology to accelerate country growth, has been selected to provide an integrated Treasury Management Information System (TMIS) and Human Resource Management Information System (HRMIS) to the Government of Kyrgyz Republic.

The implementation will be undertaken in five phases. On completion, the FreeBalance Accountability Suite will be implemented in over 100 sites, including all central government ministries, agencies, departments, line ministries and regional treasury offices. FreeBalance software will also be implemented in 3,000 state agencies/budget organizations. The payroll system will manage a civil service workforce of 76,000 employees. The integrated TMIS and HRMIS project is a turnkey implementation of FreeBalance commercial off-the-shelf software and includes hardware and services. FreeBalance is partnered with Telecommunications Consultants India Ltd. (TCIL) and Unique Technologies on the delivery of this project.

 “The Government of the Kyrgyz Republic is committed public expenditure reform that will establish a more strategic and transparent budget formulation and budget execution process,” said Mr. Zulpuev, Director of the Central Treasury and Deputy Minister of Finance of the Government of the Kyrgyz Republic. “The introduction of integrated planning solutions as part of the reform process positions our Government to affect change and provide new levels of accountability and value to our citizens.”

The Kyrgyz Republic is actively undertaking a wide-ranging reform process aimed at raising the government’s potential for economic improvement. The integrated TMIS and HRMIS project is seen as a critical step in this process. Public sector reform programs in the Kyrgyz Republic are supported by Governance Structural Adjustment Credit (GSAC) from the World Bank’s International Development Association (IDA). The GSAC designed to enhance the transparency, openness and accountability of the public sector to external stakeholders and to improve government effectiveness and efficiency.

 “The Government of the Kyrgyz Republic recognizes that transparency, openness and accountability can improve citizen, development partner and business confidence,” said Manuel Pietra, President & CEO of FreeBalance. “The integrated global economy rewards countries who improve transparency.”

 The Treasury Management Information System (TMIS) will improve government efficiency, decision-making, cash management and budget execution. Integrated budget management will ensure that all government budgets are executed based on government priorities. Faster reporting of budget execution at all levels of the government will ensure better use of cash. It will provide civil servants with accurate information to improve development results. The Human Resources Management Information Systems (HRMIS) will enable civil service reform and increase human capacity within the government. Effective human resource management systems will assist in the improved professionalization of the civil service through setting standards, training programs for personnel development and assessing progress.

 The fully web-based FreeBalance Accountability Suite was designed specifically for Government Resource Planning. The configuration for the Government of the Kyrgyz Republic will manage the entire budget cycle. The FreeBalance Accountability Suite enables rapid localization and will support the Russian language. The FreeBalance system can also support the Kyrgyz language. The configuration approach used in the Suite enables the Government of the Kyrgyz Republic to progressively activate advanced functions. This enables the FreeBalance Accountability Suite to support on-going reform and modernization.

 About the Kyrgyz Republic

 Kyrgyz Republic achieved independence on August 31, 1991 following the breakup of the Soviet Union. Kyrgyz Republic has an estimated population of 5,431,747. Kyrgyz Republic is the first Commonwealth of Independent States country to be accepted into the World Trade Organization. Kyrgyz Republic produces approximately 11.6 billion USD of GDP at purchasing power parity exchange rates growing at a rate of 7.6%. GDP is supported by exports of tobacco, cotton, electricity, natural gas, gold, mercury and uranium. The Government of the Kyrgyz Republic has demonstrated positive results from anticorruption and domestic industry restructuring programs. The Government of the Kyrgyz Republic has successfully raised foreign investment to sustain future growth.

About FreeBalance

Founded in 1984, FreeBalance is a For Profit Social Enterprise (FOPSE) software company that helps governments around the world to leverage robust Government Resource Planning (GRP) technology to accelerate country growth. FreeBalance software solutions for public financial and human resource management support reform and modernization to improve governance, transparency and accountability. Good governance is required to improve development results.

FreeBalance is headquartered in Ottawa, Canada, with sales and support offices in Washington, DC (United States), Lima (Peru), Lisbon (Portugal), London (Great Britain), Pristina (Kosovo) and St. John (Antigua and Barbuda). FreeBalance solutions have been implemented in countries across the globe, including Canada, United States, Sierra Leone, Guyana, Pakistan, Mongolia, Afghanistan, Antigua & Barbuda, Palestine, Timor-Leste, Republic of Kosovo and Panama.

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Media Contact:

Matthew Olivier

Director, Global Marketing & Alliances

FreeBalance

Tel: +1 (613) 236-5150 ext.129

molivier@FreeBalance.com

www.FreeBalance.com

Review: The State of Budget Transparency Worldwide

Monday, December 21st, 2009

Vivek Ramkumar of the International Budget Partnership describes the importance of open budgets in a recent article of the International Journal on Governmental Financial Management.  There is a wide range in budget transparency in countries around the world.  Budget proposals are often not presented to the public prior to the legislative process. Sometimes budgets are not presented to legislators in a timely manner. The finalized government budget is often not presented to the public. The final budget results at the end of the fiscal year are not always presented to the public. The Open Budget Index assessed oversight by legislative bodies and Supreme Audit Institutions (SAI).

The budget is the most critical financial process in government. The budget is the legal embodiment of government intentions. Mr. Ramkumar makes a strong case for  transparency across the entire budget cycle. He provides examples of how civil society organizations interact with governments to help improve development results.  The Open Budget Index concludes  “that the state of budget transparency around the world is very poor.” Some countries have shown improvement in budget transparency.

Mr. Ramkumar advocates the use of 8 key documents in the budget cycle to demonstrate transparency:

  1. Pre-Budget Statement
  2. Executive’s Budget Proposal
  3. Enacted Budget
  4. Citizens Budget
  5. In-Year Reports
  6. Mid-Year Review
  7. Year-End Report
  8. Audit Report

The State of Budget Transparency Worldwide

Mr. Ramkumar observes patterns:

  • Countries dependent on aid
  • Geographic location
  • Countries with high oil and gas revenue
  • Political systems

Mr. Ramkumar provides a set of recommendations for governments. He recommends that  ”the most immediate – and often the least costly – action that governments can take to improve transparency is to make publicly available (through their websites) the budget information they already produce for the government’s internal use.”  He also provides advice for legislature and SAI reform.

Government 2.0 Use Cases, Part 2

Monday, December 21st, 2009

We’re developing additional Government 2.0 use cases that combine ransactions, ocuments and ollaboration to show how back-office Government Resource Planning (GRP) should co-exist with Government 2.0 applications. We started with 5 use cases last week http://www.freebalance.com/blog/?p=706. Here are 5 more:

Use Case: Public Works

Goal in Context: Water and Sewer Maintenance improvement

Primary Actor: Foreman

Scope: Work Order, Complaint and Maintenance Management

Success Scenario:

<T> Project and work order system includes maintenance schedule

<D> Maintenance procedures documented

<D> Maintenance schedule posted on-line

<C> Citizens view the current maintenance schedule

<C> Citizens identify potential water and sewar problems based on observations

<T> Work orders adapted based on observations

<C> Forman reports on accuracy of data, issues with pipes

<T> Maintenance schedule adapted to be more effective

Frequency: Ad-hoc 

Use Case: Aid Transparency

Goal in Context: Improved results through aid harmonization

Primary Actor: Donor Country Manager

Scope: Aid harmonization, project and financial management, reporting, monitoring and evaluation

Success Scenario:

<D> Donor has development objectives in developing country

<C> Discussion among donors and government includes projects that relate to donor priorities

<D> Project information details provided in aid management system

<C> Donor agrees to funding scenario

<T> Initial disbursements made in aid management system

<T> Disbursements enter government financial management system

<T> Government expenditures in donor project

<T> Government reports from financial management system to aid management system saving transaction costs

<T> Aid management system displays project status and risk as part of monitoring and evaluation

<T> Donor able to see full extent of project related to objectives to identify good practices

<C> Donor discussion with government about mitigating risk

<T> Additional disbursements made to country system

<C> Development partners provide comments on projects while in progress

<D> Project completion document

<T> Numerous project and financial reports produced

<D> Similar projects in other countries analyzed

<C> Donor and government disccusion on improving results

Frequency: Quarterly

Use Case: Government Performance Management

Goal in Context: Find wasy to improve performance measurements

Primary Actor: Program Manager

Scope: budget and performance management

Success Scenario:

<T> Year-end statuatory reports completed and audited

<T> Performance reports tying output and outcomes completed

<C> Comments and narrative added to performance reports

<D> Performance reports published to transparency portal

<C> Comments added by public and experts in the field

<C> Best ideas captured and presented as survey

<T> New ideas added as outcome and output measurments

Frequency: Annually

Use Case: Vendor Management

Goal in Context: Ensure high quality vendors

Primary Actor: Purchasing agent

Scope: Evaluation and dispute management, tendering

Success Scenario:

<T> Procurement cycle in operation

<C> Acceptence testing of vendor goods and services

<T> Timliness of goods, services and service level agreements stored in procurement system

<C> Complaints about some vendors are received

<D> Vendor contract obligations examined

<C> Complaints results in some vendors being blacklisted

<D> Vendors notified of status change with official letter

<T> Vendor status updated

<C> Vendor dispute mechanism

<T> New procurement cycle

<C> Tender evaluation criteria developed that includes calculation based on vendor quality

<D> Qualified bidders are invited to tendering process

<D> Tenders received by bidders

<T> Vendor quality forms part of tender score

Frequency: On-going, although many governments may evaluate vendors on a scheduled basis

Use Case: Travel & Subsistence

Goal in Context: Efficient transparency in travel costs for senior public servants

Primary Actor: Senior Public Servant

Scope: transparency in expense reporting

Success Scenario:

<T> Civil servant completes expense report

<D> Civil servant attaches receipts

<T> Submission to Civil Service Management software

<D> Receipts checked against government policy

<C> Discussion related to some receipts – clarification received

<T> Payment of receipts made to public servant

<T> Public servant travel data exported to XML format

<D> Document assembled showing senior civil service travel expenses for the year

<T> Data in XML format provided on transparency portal for analysis

<T> XML data mashed up against maps to show expenses by region and foreign expenses

<C> Some travel expenses generate discussion

Frequency: Quarterly

2010 Grant Thornton ICGFM Avancées réalisées dans la réforme de la gestion des finances publiques

Monday, December 21st, 2009
Nicolas Savoie FreeBalance Inc.
Il y a sans doute eu des progrès qui ont été accomplis par les gouvernements au cours des dernières années dans la gestion de leurs finances publiques. Malheureusement, ce n’est pas le cas pour tous et ceux qui ont réussi se doivent partager leurs expériences avec les autres gouvernements afin qu’ils puissent éviter de faire les mêmes erreurs de parcours. L’assistance technique est représentée à sa juste valeur car la capacité interne à supporter une telle reforme est souvent impossible sans elle. Comme cette enquête l’indique, un des problèmes les plus couramment observés est l’habileté à diriger ainsi qu’à gérer le changement. Les anciennes méthodes et processus de gestion financière sont bien souvent ancrées dans la culture d’une organisation et ces habitudes sont très difficiles à changer. Même des modifications législatives ne sont parfois pas suffisantes pour modifier ces méthodes. Les dirigeants financiers des gouvernements doivent s’assurer que leurs finances publiques soient gérées de façon correcte tout en suivant les normes comptables internationales. Cela mènera inévitablement à une amélioration des connaissances, une meilleure adaptation aux fluctuations économiques et une plus grande transparence face a son public.

2010 Grant Thornton ICGFM Avancées réalisées dans la réforme de la gestion des finances publiques

Review: ICGFM Survey of Government Finance Managers Arabic

Monday, December 21st, 2009

قام شركاء شركة FreeBalance  الإتحاد الدولي للإدارة المالية الحكومية و Grant Thornton بنشر نتائج إستطلاع الرأي الدولي للمسؤولين التنفيذين الماليين الحكوميين. و قد بين الإستطلاع تقدما في إصلاح الإدارة المالية العامة ،  و تبين أن زيادة الشفافية في الحكومة و إشراك المواطنين يعتبر حافزا مهما لتحسين الحوكمة. هذا يعتبر تقدما مهما حيث كانت في السابق المنظمات العالمية تحث الحكومات على إصلاح الإدارة المالية العامة. و تم الآن تدويل فكرة الإصلاح و أصبحت الحكومات تبحث عن فرص تحسين النتائج و كسب ثقة المواطنين. “أجاب معظم المشاركين بالإستطلاع بأن زيادة الشفافية تستحق التكلفة الزائدة المتعلقة بها لضمان إستمرارية الإنفتاح و تشجيع إشتراك المواطنين”. و 10% فقط من المشاركين بالإستطلاع أجاب بأن إصلاح الإدارة المالية العامة هو فقط لهدف إرضاء الجهات المانحة.

إن إصلاح الإدارة المالية العامة يتضمن أكثر من مجرد أنظمة إدارة الموارد الحكومية ، لقد أظهرت الدراسة وجود طلب على الربط بين الأنظمة و على أنظمة إدارة الموازنة و إدارة المشتريات.

إن تطوير الموارد البشرية يعتبر من العوامل المهمة بالنسبة للحكومات. و يعتبر عدم توفر مهنيين ماليين و محاسبيين مؤهلين من العوائق الأساسية في طريق الإصلاح المالي. و هذا لا يقتصر فقط على الدول النامية ، فقد أظهرت عدة إستطلاعات قامت بها Grant Thornton بأن عدم توفر الموارد البشرية المؤهلة يعتبر عائقا للإصلاح المالي في الولايات المتحدة الأمريكية، و كان هذا أيضا الحديث الشائع خلال أسبوع تطوير المؤهليين الذي عقد مؤخرا من قبل معهد الإدارة المالية في كندا.

إن لدى الحكومات حاجة ملحة لتطوير الموارد البشرية و ذلك لضمان إستمرارية الإصلاح المالي، و إنه من غير المستغرب أن 70% من المشاركين في الإستطلاع يؤمنون بأن وجود الدعم التقني لتطوير مواردهم البشرية يعتبر من أهم الدعم المطلوب، و 4% فقط يعتبرون الدعم المالي و التمويل هو الأهم.

وفقا للمشاركين في إستطلاع الرأي، تجتمع القيادة و إدارة التغيير معا لأنه بدون القيادة لن يكون هناك تغيير مقترح. و أفاد العديد من المشاركين بأن البيروقراطية تعترض الإصلاح المالي التقني مثل تطبيق نظام محاسبة الإستحقاق و أتمتتة الإجراءات المحاسبية. و يعتبر التغيير صعبا في المنظمات الكبيرة ، و من الصعب أيضا إستمرارية التغيير، و إن مثل هذا التغيير متضمنا التغيير التقني يتطلب قيادة قوية و مهارات إتصال، و على القيادات في الحكومة التواصل مع المواطنين بواسطة كافة قنوات الإتصال.

تعتبر الشفافية الموضوع المهيمن المتعلق بإصلاح الإدارة المالية العامة، و يعبر الكشف عن البيانات المالية و الموازنات و حرية نشرها عاملا رئيسيا لدعم الإصلاح المالي، و إن خبراتنا في هذا المجال تدعم نتائج الإستطلاع.

يدرك قادة العديد من الدول بأن توفير قيم أكبر للمواطنين يقوي مراكزهم، ففي الدول الديموقراطية تسعى الحكومات لإعادة إنتخابها من خلال توفير الشفافية على إنجازاتها. فإن الشفافية المالية تؤدي إلى زيادة الإستثمار و زيادة الجهود المشتركة.

إن الإستطلاعات غير الرسمية التي قام بها الإتحاد الدولي للإدارة المالية الحكومية خلال المؤتمر الذي إنعقد في مايو 2009 ، أبرزت أن الأزمة الإقتصادية زادت من الحاجة إلى الإصلاح المالي. و المقابلات التي أجريت مع المدراء الماليين أكدت نتائج الإستطلاع. إن إصلاح الإدارة المالية العامة يزيد من فعالية الأداء العام و يمكن الحكومات من إنجاز المزيد و بتكلفة أقل.

ICGFM Survey of Government Finance Managers, Arabic

SOS Children’s Village Alumnus Joins FreeBalance Team in Sierra Leone

Saturday, December 19th, 2009

Harry Ibrahim Turay latest member of FreeBalance services team based in Freetown, Sierra Leone

Ottawa, Canada (December 18, 2009) – FreeBalance, a For Profit Social Enterprise (FOPSE) software company that helps governments around the world to leverage robust Government Resource Planning (GRP) technology to accelerate country growth, is pleased to announce that the company has employed Harry Ibrahim Turay, an alumnus of the SOS Children’s Village in Freetown, Sierra Leone. Mr. Turay spent 15 years in the SOS Children’s Village program in Sierra Leone and attended the Hermann Gmeiner School from 1991-2006. He joins FreeBalance as a functional support specialist based in Freetown.

Manuel Pietra, President & CEO of FreeBalance, visits SOS Children’s Village in Freetown, Sierra Leone

FreeBalance is a FOPSE that contributes to economic development and social programs in customer countries by forming local partnerships and hiring citizens to ensure independently sustainable implementations. FreeBalance technology accelerates country growth and helps improve governance, demonstrate accountability in public finance and bolster citizen confidence through transparency. FreeBalance is also committed to supporting children’s programs in the developing world. FreeBalance has established partnerships with organizations such as SOS Children’s Villages to directly impact the lives of thousands of children. In Sierra Leone, FreeBalance has worked directly on several projects with the village in Freetown since 2007.

“FOPSE embodies the FreeBalance commitment to international development, active participation in the global community and social responsibility,” said Manuel Pietra, President & CEO of FreeBalance. “The strength of our company is based not only by the reputation of the products and services that we provide but by the impact that we make in the countries and communities where we do business.”

FreeBalance has successfully transitioned to a FOPSE by directly impacting the civil service and the citizens in customer countries. FreeBalance solutions are now used by 25,000 civil servants in Canada and 35,000 civil servants internationally. Our software solutions are being used to manage a global workforce of nearly 1.5 million civil servants and a quarter trillion dollars in annual budgets worldwide. The FreeBalance Accountability Suite has now been implemented in 18 countries across 15 different time zones and in more than 200 government entities at the national and sub-national level.

About SOS Children’s Villages

SOS Children’s Villages is an international non-governmental social development organisation that has been active in the field of children’s rights and committed to children’s needs and concerns since 1949. In 132 countries and territories our activities focus on children without parental care and children of families in difficult circumstances.

At present there are three SOS Children’s Villages in Sierra Leone, two SOS Youth Facilities, one SOS Home for the Physically Challenged, three SOS Kindergartens, three SOS Hermann Gmeiner Schools, one SOS Vocational Training Centre and one SOS Social Centre/Family Strengthening Programme.

About FreeBalance

Founded in 1984, FreeBalance is a For Profit Social Enterprise (FOPSE) software company that helps governments around the world to leverage robust Government Resource Planning (GRP) technology to accelerate country growth. FreeBalance software solutions for public financial and human resource management support reform and modernization to improve governance, transparency and accountability. Good governance is required to improve development results.

FreeBalance is headquartered in Ottawa, Canada, with sales and support offices in Washington, DC (United States), Lima (Peru), Lisbon (Portugal), London (Great Britain), Pristina (Kosovo) and St. John (Antigua and Barbuda). FreeBalance solutions have been implemented in countries across the globe, including Canada, United States, Sierra Leone, Guyana, Pakistan, Mongolia, Afghanistan, Antigua & Barbuda, Timor-Leste, Republic of Kosovo and Panama.

 

FreeBalance Publishes Whitepaper: How to Become a For Profit Social Enterprise

Saturday, December 19th, 2009

Manuel Pietra outlines business case for establishing corporate social responsibility as the core of the enterprise

FreeBalance, a For Profit Social Enterprise (FOPSE) software company that helps governments around the world to leverage robust Government Resource Planning (GRP) technology to accelerate country growth, today announced the launch of a whitepaper titled “How to become a For Profit Social Enterprise (FOPSE)”. The whitepaper provides the business and ethic case for making Corporate Social Responsibility (CSR) core to company strategy.

The genesis for the FreeBalance paper was a series of oversubscribed articles from the FreeBalance Sustainability Blog. The FreeBalance Sustainability Blog, articles received substantial interest and attention from social enterprises and the broader public financial management community. The FreeBalance whitepaper outlines the FOPSE business model and identifies the critical factors to transform an existing enterprise to a FOPSE. Companies who become FOPSE commit to CSR as core to their business models.

“Building socially conscious organizations is a business imperative with global consequences. This type of social entrepreneurship amplifies the impact of corporate social responsibility,” said Manuel Pietra, President & CEO of FreeBalance. “FreeBalance is dedicated to helping governments around the world accelerate country growth with sustainable GRP technology. Good governance and achieving development goals directly impacts local economies and the lives of each citizen. Social responsibility is integral to what we do. That’s why we operate with a customer-centric approach.”

FreeBalance has successfully transitioned to a FOPSE by directly impacting the civil service and citizens in customer countries. FreeBalance GRP solutions are now used by 25,000 civil servants in Canada and 35,000 civil servants internationally. FreeBalance software solutions are being used to manage a global workforce of nearly 1.5 million civil servants and a quarter trillion dollars in annual budgets worldwide. The FreeBalance Accountability Suite has now been implemented in 18 countries across 15 different time zones and in more than 200 government entities at the national and sub-national level.

FreeBalance contributes to customer country economies by forming local partnerships and hiring citizens ensure independently sustainable implementations. FreeBalance GRP technology accelerates country growth and helps improve governance, demonstrate accountability in public finance and bolster citizen confidence through transparency. Public financial management reform is a key element of good governance and sustainable development. FreeBalance is also committed to supporting children’s programs in the developing world. FreeBalance has established partnerships with organizations such as SOS Children’s Villages to directly impact the lives of thousands of children. FreeBalance recently had a unique opportunity to make a difference in the lives of 1,283 school children in Timor-Leste.Under the leadership of Manuel Pietra, President & CEO of FreeBalance, the company delivered 1,283 packages of school supplies to the Escola Primária de Fatuada in Dili.

FOPSE embodies the FreeBalance commitment to international development, active participation in the global community, and social responsibility. There has been a major shift in business thinking over the past decade. Today’s businesses have a global impact and should be stewards of social responsibility in the countries where they conduct business. CSR is at the forefront of the minds of executives, entrepreneurs, professors and students. Diana Middleton of The Wall Street Journal published a comprehensive account on grassroots social conscience mandates of future executives around the world in an article titled “M.B.A.s Seek Social Change.”Harvard professor Daniel J. Isenberg recently published a critical study which defines how FOPSE extends CSR to the core of the enterprise and distinguishes FOPSE from traditional for-profit company programs.

FreeBalance has embraced FOPSE and published this whitepaper to encourage entrepreneurs to consider this approach.

FreeBalance_FOPSE_2009

About FreeBalance
Founded in 1984, FreeBalance is a For Profit Social Enterprise (FOPSE) software company that helps governments around the world to leverage robust Government Resource Planning (GRP) technology to accelerate country growth. Proven FreeBalance GRP products and focused methodology supports financial reform and modernization to improve governance, transparency and accountability. Good governance is required to improve development results.

FreeBalance is headquartered in Ottawa, Canada, with sales and support offices in Washington, DC (United States), Lima (Peru), Lisbon (Portugal), London (Great Britain), Pristina (Kosovo) and St. John (Antigua and Barbuda). FreeBalance solutions have been implemented in countries across the globe, including Canada, United States, Sierra Leone, Guyana, Pakistan, Mongolia, Afghanistan, Antigua & Barbuda, Timor-Leste, Republic of Kosovo and Panama.

6. Government Resource Planning (GRP) Checklist

Thursday, December 17th, 2009

This is section 6 of a series of blog entries creating a Government IFMIS Technology Evaluation Guide. This includes information to assist in evaluating IFMIS options and the technology requirements for FreeBalance IFMIS implementations. These series will be combined with feedback to produce a comprehensive Technology Evaluation Guide to be published on our web site.

Governments have choices to implement Integrated Financial Management Information Systems (IFMIS) for Government Resource Planning:

  1. Custom developed by the government or consulting firm
  2. Generic Commercial-Off-The-Shelf (COTS) business software, such as Enterprise Resource Planning (ERP), adapted to meet government needs 
  3. Government-specific COTS GRP software

FreeBalance provides:

  • FreeBalance Accountability Suite, a COTS GRP software suite
  • FreeBalance Accountability Platform, a government-specific platform, (that forms the basis for the FreeBalance Accountability Suite) and enables the development of custom government applications

The checklist is designed to assist governments in evaluating GRP options.

Government focus – to what extent is vendor technology developed for government?

Value Best Good Fair Limited
Software functional design Software designed exclusively for government Software designed with public sector in mind Software originally designed for private sector in mind Software is custom developed
Meeting unique requirements Software uses configuration parameters and other non-programmatic methods Software uses accelerators for government implementations Software requires code customization to meet needs Software is custom developed
Localization Supports local languages and enables adjusting terminology. Supports rapid import of languages through multi-language technique and enables adjusting terminology. Is multi-lingual but requires significant effort to support translation. Cannot support local languages.
Internationalization Supports Unicode, multiple languages, different character sets, right-to-left and left-to-right languages in same configuration Supports Unicode, multiple languages, different character sets, only right-to-left or left-to-right languages in same configuration Supports Unicode, multiple languages, but limited character set option, only right-to-left or left-to-right languages in same configuration Does not support Unicode, but supports multiple languages
Help and documentation Help, documentation, e-learning integrated and can be extended to show processes in use by government Custom software has help and documentation designed specifically for government. Help, documentation, e-learning integrated but cannot be extended by government Help, documentation, e-learning a separate sub-systems, some of which can be adapted by government.
Business rules and workflow Parameter setting with simple table-driven workflow. Out of box workflow includes generic government functions. Parameter setting with simple table-driven workflow. Out of box workflow does not include generic government functions. Workflow and/or business rule changes require use of complex generic workflow or business rule tools. Requires code customization to change workflow and business rules.
Rule and workflow flexibility Supports broad range of rule and workflow designed for government without need for code customization and follows good government practices Supports broad range of private sector rule and workflow configuration that can contradict good government practices Customization approach that is flexible but expensive and can contradict good government practices Custom developed and highly flexible so able to implement rules and workflow that contradict good government practices
Software platform design Software platform designed for government includes government components Software includes some government-specific components Platform is proprietary to vendor and has some private sector functions that can be leveraged in government Purely generic technical platform
Adapting to government reform and modernization Progressive activation to enable changes via parameters Many parameters can change Some generic parameters can change but does not support substantial changes easily Requires code customization to adapt to changes
Budget focused Budget and controls built into all modules including HR Budget and controls built-in only to financial management functions Budget and controls added to private sector software Software requires customization in order to support budget management
Controls flexibility Supports multiple controls (appropriations, warrants, budgets) across different fiscal periods with tolerance controls, aggregate to line item, and two commitment stages Supports multiple controls (appropriations, warrants, budgets) across different fiscal periods with tolerance controls, aggregate to line item, with one commitment stage Supports multiple controls (appropriations, warrants, budgets) across different fiscal periods without tolerances Supports line item budget controls only
Support of the budget cycle Supports budget preparation and budget execution Supports budget execution with commitment controls but uses private sector budget preparation Supports budget execution with commitment controls but has no budget preparation Software requires customization in order to support budget cycle
Budget balancing Supports real-time look up of budget (commitments, obligations, received, actuals) and balances against General Ledger Supports real-time look up of budget (commitments, obligations, received, actuals) but does not balance against General Ledger Supports departmental real-time budgets but not whole of government budgets in real-time Does not provide real-time budget information
Functional completeness for government Includes only government functionality, no private-sector specific functions Customized software to be designed specifically for government customer, although runs risk of hard-coding functionality Software configuration limits many private sector functions Software includes both public and private sector functionality and requires configuration or customization to remove private sector functionality.
Chart of Accounts Flexibility Can model multiple segments with alternative roll-ups, support multi-year COA Can model multiple segments with alternative roll-ups, limited multi-year COA Can model current needs in COA, but difficult to adapt COA in future years to reflect changes COA is hard-coded
Accounting methods Supports cash, modified cash, modified accrual and accrual with ability to modernize from one method to the other Supports cash, modified accrual and accrual with ability to modernize from one method to the other Supports cash, modified accrual and accrual without ability to modernize from one method to the other Only supports private sector accrual accounting
Support for public sector accounting standards Supports IPSAS (cash and accrual), GFS, MTEF, COFOG and other relevant standards Current international standards adopted by government is supported Current international standards adopted by government can be customized Custom developed software that could meet relevant standards
Sequenced implementation Can sequence from core treasury functions with simple configuration to all government financial functions and complex configuration Custom solution supports method of sequencing appropriate to government. Modular deployment but each module needs to be fully configured for end state. Big bang’ approach that requires full software product to be rolled-out with all modules.
Multi-year design Has no limit to number of years of historical data and forward data in system for budget analysis, supports changes in chart of accounts configurations Has limits to number of years of historical data and forward data in system for budget analysis but meets MTEF guidelines, supports changes in chart of accounts configurations Has limits to number of years of historical data and forward data in system for budget analysis but meets MTEF guidelines, does not support changes in chart of accounts configurations MTEF analysis needs to be accomplished in data warehouse or other external system
Ease of use Ease of finding account codes, aids in double-entry bookkeeping, ensures valid codes, validates data including from 3rd party integration Ease of finding account codes, aids in double-entry bookkeeping, ensures valid codes, validates data entry only Custom solution designed specifically for government context Validates data entry but expects users to be experts in government financial management
Usability design Goal-oriented user navigation. Functional-oriented user navigation with wizards for common functions and application rather than tool design. Functional-oriented user navigation with wizards for common functions. Functional-oriented user navigation.
Government performance Performance budgeting linked to chart of accounts and outcome and output logic mapping Performance budgeting linked to chart of accounts for performance accounting Supports private sector performance management techniques Performance management must be tracked by separate information system
Government projects Supports project accounting, multi-fund accounting, project tracking and performance measurements in chart of accounts Supports project accounting, multi-fund accounting, and  performance measurements in chart of accounts Supports project accounting in chart of accounts Government project accounting handled in separate system
Reporting Standard government reporting including budget variance, meets international public sector accounting standards, supports ad-hoc reporting Standard government reporting including budget variance, meets international public sector accounting standards, requires 3rd party reporting tool for ad hoc Custom developed solution includes ability to design custom reports Standard private sector reporting, requires customization of reports to support government needs
Accountability and transparency Budget controls, ranges of approval rules, segregation of duties, real-time reporting, full audit trail Budget controls, ranges of approval rules, segregation of duties, historical reporting, full audit trail Approvals main method of control, lack of built-in controls, historical reporting and full audit trail Approvals main method of control, lack of built-in controls, historical reporting and limited audit trail

Government process – to what extent is vendor implementation and support developed for government?

Value Best Good Fair Limited
Methodology used Government-specific methodology built on best practices. Certified by ISO, CMM or equivalent Certified use of standard methodology like Prince 2 Uses proprietary methodology that is not government specific but has been certified. Uses proprietary methodology that has not been certified.
Implementation team Government experts, former civil servants, wide range of experience in governments around the world and with international standards Custom solution designed by government with full knowledge of government requirements Team has some government experts Expert with software solutions, without significant government expertise
Implementation speed First phase implementations average less than 1 year from project kick-off. First phase implementations average less than 2 years from project kick-off. First phase implementations average less than 3 years from project kick-off. First phase implementations average less than 5 years from project kick-off.
Capacity building Implementation team provides mentoring, recommends blueprint, trains on software, government accounting and IT. Implementation team trains on software, government accounting and IT. Implementation team trains on software and IT. Implementation team trains on software package only
Enhancement methods Software vendor support and services integrated with product development, government requirements have top priority, use of steering committee to anticipate future needs Custom solution owned by government determines enhancements but cannot take advantages of enhancements made for other customers Software vendor specializes in a small number of markets, one of which is government, has government user group to help drive enhancements Implementation done by third party, software vendor weighs enhancements across many markets
Additional enhancement participation Custom software enables government to determine what enhancements will be implemented – is essentially handling the entire software development cycle. Government customers can be integrated within the entire software vendor development cycle including developing specifications, approving specifications, beta testing Customers can request enhancements, any customer can beta test Customers can request enhancements, only ‘qualified’ customers can beta test
Support locations Software vendor or custom provider provides support centre directly in government IT offices Software vendor provides local support and services office with local staff fully trained in government functionality. Software vendor provides local support and services office supporting public and private sector customers. Regional support centre provided.
Maintenance method Maintenance includes software support and free upgrades, even when platforms change. Maintenance can be discontinued but reconstituted by back paying maintenance. Maintenance includes software support and free upgrades, even when platforms change. Any discontinuing of maintenance requires re-purchase of licenses to receive maintenance in future. Maintenance handled through third parties. Government maintains custom code.
Sustainable upgrading Vendor places customized features into main line of code to ease upgrading BPM approach where customization is limited to workflow and is separate from the main code Custom developed solution where government or consultant upgrades to next version Change management of code customization requires significant effort to ensure customizations work with next version
Upgrade policy Custom software enables government to upgrade when needed Vendor supports many versions of the software and recognizes that upgrades need to be budgeted and respects government fiscal years Vendor support many versions but operates on delivery schedule independent of government customer fiscal years Vendor forces government to upgrade to next version with little grace period
Multiple version support Vendor fixes defects in many previous versions of the software Vendor fixes defects in current and previous version of the software Vendor fixes defects in previous versions of the software at an additional cost Vendor only fixes defects in current version of software

Open technology – to what extent is vendor technology open, accessible and low cost to support?

Value Best Good Fair Limited
Middleware approach Software is open system – can use open source and commercial middleware Software is somewhat open by using widely adopted software stacks Software platform is somewhat proprietary but has options for open source and commercial middleware Software utilizes proprietary middleware stack from application vendor
Service oriented architecture Software design is a component-based SOA to facilitate integration Software design is monolithic but supports a broad set of industry standard integration methods Software integration utilizes vendor proprietary standards for integration Software integration requires batch interfaces
Web-based Pure web-based through the use of applications servers Web-wrapped where software core is client/server but is deployed via the web through wrappers and other techniques Web-enabled where software core is client/server and is deployed through web enabled virtualization and other techniques Software is client/server
Multi-tiered architecture Multi-tiered design that exceeds the minimum of presentation, business logic and data layers 3-tiered design, presentation, business logic and data layers Some overlap of tiers such as some business logic in presentation layer or most business logic in data tier No respect of 3-tiered design
Technical footprint Optimal – designed for government, can operate on a single laptop for 10 concurrent users + Custom developed so has no unneeded tables and functions Built on private sector base and includes many unneeded tables and functions, but some removed in configuration Built on private sector base and includes many unneeded tables and functions
Functional footprint Implemented by vendor at every tier of government in countries integrated Implemented by vendor at every tier of government in countries but not fully integrated Implemented only at a single government tier Only a departmental solution
Support for government transactions, content and collaboration Integrates transactions, content and collaboration functions and uses Web 2.0 user interface Integrates transactions, content and collaboration functions and uses traditional user interface Transaction-centric with some content attachment, notations and message integration Transactions only
Scalability From small departmental solutions and projects to whole of government Scales to very large organizations but footprint too large for departmental solutions Scales to thousands of users but cannot scale to whole of government Cannot scale beyond departmental level
Deployment Central, de-centralized, regional hubs, stand-alone systems and disconnected systems supported. Cloud computing supported. Some flexibility in deployment options Supports centralized deployment with always-on network and assumes minimum bandwidth Supports stand-alone systems only
Multi-tiered deployment Supports integration among different configurations across line ministries and government tiers and multi-tiered synchronization of budget adjustments and outturns Supports integration among different configurations across line ministries and government tiers without multi-tiered synchronization Supports integration within tiers of governments where systems have the same configuration within tier (national, regional, local) Centralized approach where all configuration in all line ministries and government tiers are identical
Government control Fully customized solution where government uses technical platform and owns developed code Option for government platform that accelerates development compared to technical platform and government owns developed code General software application platform that enables customization and government owns the customized code Vendor software code placed in escrow
Security Supports security standards, has plug-in architecture for government standards Custom developed so any security method could be supported Supports some security standards, most security it proprietary to the software vendor Security is proprietary to software vendor
Licensing method Custom solution, has no license Combination of license methods: rental, named users, concurrent users, occasional users, site and enterprise. Supports component level licensing. Combination of license methods: rental, named users, site and enterprise. Supports module level licensing. Combination of license methods: named users, site and enterprise. Supports module level licensing.